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EXCEL BOOKS

Chapter

26
INDUSTRIAL RELATIONS AND INDUSTRIAL DISPUTES

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ANNOTATED OUTLINE

INTRODUCTION
The term industrial relations refers to the collective relations between employers and employees as a group. It underscores the importance of compromise and accommodation in place of conflict and controversy in resolving disputes between labour and management.

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Industrial Relations: Features

Employer-employee interactions Web of rules

Multidimensional
Dynamic and changing Spirit of compromise and accommodation Government's role Wide coverage Interactive and consultative in nature

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Major factors influencing industrial relations

Industrial relations are influenced by various factors viz., institutional factors, economic factors and technological factors. 1. Institutional factors: These factors include government policy, labour legislation, voluntary courts, collective agreements, employee courts, employers federations, social institutions like community, caste, joint family, creed, system of beliefs, attitudes of workers, system of power, status, etc. 2. Economic factors: These factors include economic organisations, like capitalist, communist, mixed, etc., the structure of labour force, demand for and supply of labour force, etc.. 3. Technological factors: These factors include mechanisation, automation, rationalisation, computerisation etc.
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Industrial relations: major influences

Government Rules, Awards, Policies Employer Employees

Industrial Relations

Employers Associations Usages, customers, traditions within a country

Trade Unions

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Objectives of industrial relations

Enhance the economic position of the worker Minimise conflicts and to the extent possible, avoid conflicts and their negative consequences Allow workers to have a say in important decisions affecting their lives Resolve knotty issues through consultation and negotiation Encourage and develop trade unions in order to improve the workers' collective strength Pave the way for industrial democracy.

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Approaches To Industrial Relations

There are five approaches to study industrial relations, namely: Psychological approach Sociological approach Human relations approach Giri's approach

Gandhian approach
HRD approach The HRD approach recognises employees as invaluable assets in an organisation and emphasizes that they can be developed to an unlimited extent with proper incentives, atmosphere and treatment.
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Basic assumptions of Industrial Relations and HRD

Industrial Relations Employee-employer relations are contractual and enveloped by economic factors The emphasis is on extrinsic rewards The focus is not on developing the employee. Follow the code book and put out the fires as quickly as you can Pluralist Managerial task vis-a-vis labour Focus Philosophy Rewards HRD Employer-employee relations should be based on trust, understanding and openness Intrinsic rewards spur people to superior performance Develop the employee through HRD initiatives: caring, counselling, mentoring, helping, coaching. Preventive, collaborative approach where relations matter most and not rules. Unitarist Nurturing, caring, helpful Conflict could be functional, stimulating and healthy if used properly; manage climate and culture. Increased flow Teamwork Facilitation

Orientation

Nature of Relations Monitoring

Institutionalised, unhealthy and is at the core of Conflict industrial relations, reach temporary truces Restricted flow Division of labour Negotiation Communication Job design Managerial skills

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Sound Industrial Relations:

Importance and essential conditions
Sound industrial relations are essential for ensuring industrial peace and improved productivity. Cordial labour management relations enable the employer to secure cooperation and commitment from employees quite easily. It is not, however, easy to promote and maintain sound industrial relations. Certain conditions should exist for the maintenance of harmonious industrial relations: Existence of strong, well organised and democratic employees' unions Existence of sound and organised employers' unions Spirit of collective bargaining and willingness to resort to voluntary negotiations Maintenance of industrial peace
Establish machinery for prevention and settlement of disputes Provision for bipartite and tripartite committees to evolve proper personnel policies Establish committees to evaluate collective bargaining agreements Create proper legal mechanisms to settle disputes quickly and easily.

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Industrial Conflict: Forms And Causes

Industrial conflicts constitute militant and organised protests against existing industrial conditions. They are symptoms of industrial unrest. The term industrial dispute as described in the Industrial Disputes Act, 1947 is characterised by the following features

Features of the term industrial dispute

There should be a difference or dispute The dispute could be between employer-employer, employee-employee or employer-employee The dispute must pertain to some work-related issue The dispute must be raised by a group or class of workers. For example the dispute between one or two workers and the respective employer is not an industrial dispute

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Forms of Industrial Disputes

Strikes: These are collective stoppages of work by workers. Sympathetic strike General strike Unofficial strike Sectional strike

Bumper strike
Sit down strike Slow down strike Lightning strike Hunger strike

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Forms of Industrial Disputes

Lock outs: Closing down of an undertaking or the suspension of work or the refusal of an employer to continue to employ any number of persons employed by him is known as 'lock out'. Gherao: Gherao means to surround. In this method, a group of workers initiate collective action aimed at preventing members of the management from leaving the office.

Picketing and Boycott: When picketing workers often carry or display signs, banners and placards, prevent others from entering the place of work and persuade others to join the strike. Boycott aims at disrupting the normal functioning of an enterprise.

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Causes of Industrial Disputes

Employment-related Nationalisation Administration-related Recognition as a bargaining agent Sympathetic strikes Psychological and social issues Institutional causes Political causes

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Machinery For The Settlement of Industrial Disputes In India

When the relationship between the parties is not cordial, discontentment develops and conflicts erupt abruptly. It is not always easy to put out the fires with the existing dispute-settlement machinery, created by the government. Hence both labour and management must appreciate the importance of openness, trust and collaboration their day-to-day dealings.

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Machinery for Prevention and Settlement of Industrial Disputes

Machinery for prevention and settlement of disputes

Voluntary Methods
Collective Bargaining Trade Unions Joint consultations Standing Orders Grievance Procedure Code of Discipline

Government Machinery Labour Administration Machinery

State Level Central Level

Statutory Measures
Works Committees Conciliation

State Acts

Industrial Disputes Act, 1947

(A) (B)

C.Officer C. Board

Arbitration Adjudication

(a) (b) (c)

Labour Courts Industrial Tribunals National Tribunals

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Machinery For The Settlement of Industrial Disputes In India

Works committees: As per the Industrial Disputes Act, 1947, works committees have to be set up all those industrial units which employ 100 or more persons. It is basically a consultative body Giving greater participation to workers Ensuring close interaction between labour and management Generating cooperative atmosphere for negotiation between parties Opening the doors to unions to have a clear view of what is going on within the unit Strengthening the spirit of voluntary settlement of disputes

Joint Management Councils: The JMC normally consists of equal number of representatives of workers and employers looking after three things: information sharing, consultative and administrative matters relating to welfare, safety, training etc and the formulation of standing orders.(of course, without encroaching on the jurisdiction of works committees)
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Machinery For The Settlement of Industrial Disputes In India

Standing orders: These are the rules and regulations which govern the conditions of employment of workers. The Industrial Employment (standing orders) Act of 1946 provides for the framing of standing orders in all industrial undertakings employing 100 or more workers. Grievance procedure: A model grievance procedure as suggested by the Indian Labour Conference, 1958 has more or less been widely accepted in India now. Code of discipline: It consists of a set of self-imposed obligations voluntarily formulated by the central organisation of workers and employers.

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Industrial Disputes: Settlement Machinery

Conciliation: The practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution.
Conciliation officer: an authority appointed by the government to mediate disputes between parties brought to his notice; enjoying the powers of a civil court. He is supposed to give judgement within 14 days of the commencement of the conciliation proceedings. Board of conciliation: The Board is an adhoc, tripartite body having the powers of a civil court created for a specific dispute(when the conciliation officer fails to resolve disputes within a time frame, the board is appointed)

Court of enquiry: In case the conciliation proceedings fail to resolve a dispute, a court of enquiry is constituted by the government to investigate the dispute and submit the report within six months.
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Machinery For The Settlement of Industrial Disputes In India

Voluntary arbitration: It is he process in which the disputing parties show willingness to go to an arbitrator (a third party) and submit to his decision voluntarily. This is followed after failure of conciliation proceedings. Adjudication: It is the process of settling disputes compulsorily through the intervention of a third party appointed by the Government. The Industrial Disputes Act provides a three-tier adjudication machinery consisting of: Labour court Industrial tribunal National tribunal

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